Gulf Arab stock markets ended lower, ending a two-day rally and taking their cue from declining global markets.

"We're not out of the woods yet as the uncertainty is still there despite new measures to ease off pressures within the banking sector," says Rami Sidani, head of Middle East and North Africa investment at Schroders Investment.

Emaar Properties tumbled 9.88 percent after a two-day surge, pulling the main Dubai index to a lower close.

Emaar erased some of the gains it has made over the past two days, during which it surged 29.93 percent. The benchmark slid 7.44 percent to 3,427 points.

Oman's index edged down 0.35 percent to 7,690 points, led by Oman Oil Co and Oman Flour Mills, which declined 3.6 percent and 6.73 percent respectively.

Kuwait's benchmark closed 0.64 percent lower at 11,719 points, led by Commercial Bank of Kuwait and Ahli United Bank, which declined 1.56 percent and 1.96 percent.

Bahrain's Gulf Finance House and Bahrain Telecommunications Co slipped 4.56 percent and 4 percent respectively. The index slid 1.05 percent to 2,346 points.

Abu Dhabi's index fell 2.13 percent to 3,525 points as Emirates Telecommunications Co and Sorouh Real Estate declined 2.49 percent and 5.57 percent respectively.

Qatar's index fell 3.32 percent to 8,098 points, led by Qatar Islamic Bank which fell 4.58 percent.- Reuters